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Chinese firms flock to Bangladesh as US tariffs drive factory relocation
BY Insider Desk
August 25, 2025

Bangladesh is emerging as a new hub for Chinese manufacturers shifting production bases to offset high US tariffs, with a series of fresh investments signed under the Bangladesh Export Processing Zones Authority (BEPZA).
Officials say the BEPZA Economic Zone (BEPZA EZ) in Mirsarai, near Chattogram port, has drawn particular interest thanks to Bangladesh’s preferential duty access to the EU, relatively lower tariffs in the US market, expanding infrastructure, and low labour costs.
Five Chinese companies have recently signed deals that together will create nearly 19,000 jobs in footwear, apparel, lingerie, accessories, and household products.
Dunion Taiyang Sheng Shoes (BD) Co. Ltd will invest $10.2 million in a footwear facility producing 2.1 million pairs annually, creating 1,939 jobs. Baishili Household Products Bangladesh Co. Ltd plans a $10.5 million plant producing 21.4 million units of household goods and bags, employing 989 workers.
Khaixi Group, already operating in BEPZA EZ, is expanding with a $40 million lingerie project to add 3,003 jobs, while its first factory now employs 3,700. Handa (Bangladesh) Garments Co. Ltd will invest $41.3 million in an automated apparel facility producing 72 million items annually and creating more than 10,000 jobs.
Unifa Accessories (BD) Co. Ltd, a China–British Virgin Islands venture, will invest $48.7 million to produce 28 million fashion items, adding 2,830 jobs.
So far, over 45 companies have committed more than $1 billion in BEPZA EZ, with five factories in operation and 22 under construction.
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